The government has raised profit rates across several National Savings and Sarwa Islamic Schemes, offering higher returns to investors from May 26, 2026. The revised rates apply to multiple savings products, including short-term, monthly income and term-based certificates.
The move comes as savings instruments continue to adjust in line with changing financial conditions, giving depositors slightly better returns on their investments. However, all gains remain subject to withholding tax, zakat deductions and applicable service charges.
Special Savings Certificate leads gains
The most notable change is seen in the Special Savings Certificate. Its profit rate has increased by 2.20 percent to 11.6 percent per annum for the first five profit payments. On a Rs100,000 investment, this translates to Rs5,800 every six months.
For the sixth and final payout, the rate is higher at 12.4 percent per annum, or Rs6,200 per Rs100,000. Profit is paid every six months, while tax at 15 percent applies to filers and 30 percent to non-filers, along with a 2.5 percent zakat deduction where applicable.
The Regular Income Certificate has also been revised upward by 1.86 percent to 11.82 percent per annum. It now offers around Rs985 per month on each Rs100,000 invested.
Meanwhile, the Savings Account rate has been increased by 1 percent to 10 percent per annum, under the same tax and deduction rules.
Short-term and long-term instruments revised
Short-term savings certificates have also seen upward changes. The three-month option now yields 10.84 percent per annum, the six-month certificate offers 10.58 percent, and the one-year certificate provides 11.23 percent, each calculated per Rs100,000 investment.
The Defence Savings Certificate remains unchanged in this cycle. It continues to offer long-term cumulative returns that grow gradually over a ten-year period, reaching up to 170 percent by maturity.
Other welfare-focused schemes, including the Behbood Savings Certificate, Pensioners’ Benefit Account and Shuhada Family Welfare Account, also remain steady at 12 percent per annum. These schemes continue to target widows, senior citizens, retired government employees and families of martyrs, with monthly returns on deposits between Rs5,000 and Rs7,500,000.
Islamic savings products also see increases
On the Islamic side, Sarwa Islamic Schemes have also recorded higher profit rates, rising between 1 percent and 1.65 percent across products.
The Sarwa Islamic Term Account offers different options. The one-year plan provides an expected 10.93 percent per annum with payout at maturity. The three-year option yields 9.16 percent with bi-annual payments, while the five-year plan offers 11.16 percent per annum with monthly payouts.
The Sarwa Islamic Savings Account now stands at 10.93 percent per annum, with monthly returns of around Rs910 per Rs100,000.
All Islamic products are also subject to withholding tax, zakat and service charges as per rules.
Officials noted that investors should factor in tax differences when calculating actual returns. Filers are taxed at 15 percent, while non-filers face 30 percent, which significantly reduces net earnings.
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